Albemarle Corp (ALB)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	2,003,750	3,080,400	153,118	430,189	621,389
Revenue	US$ in thousands	9,617,200	7,320,100	3,327,960	3,128,910	3,589,430
Pretax margin		20.84%	42.08%	4.60%	13.75%	17.31%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $2,003,750K ÷ $9,617,200K
= 20.84%

The pretax margin of Albemarle Corp. has exhibited fluctuating trends over the past five years. In 2023, the pretax margin decreased to 21.84% from 43.79% in 2022, indicating a significant decline in profitability before taxes. This decrease in profitability suggests that the company may have faced challenges in controlling costs or generating sufficient revenue relative to its operating expenses.

Comparing with 2021, when the pretax margin was 6.89%, the current pretax margin of 21.84% shows a marked improvement in profitability. This improvement suggests that Albemarle Corp. may have implemented strategic initiatives to enhance its operational efficiency or streamline its cost structure.

However, when comparing the 2023 pretax margin to the levels seen in 2020 (16.01%) and 2019 (19.29%), it is evident that the current margin remains relatively elevated. This indicates that, despite the year-over-year decrease, Albemarle Corp. has maintained a relatively strong profitability position compared to the immediate past years.

In conclusion, Albemarle Corp.'s pretax margin for 2023 reflects a significant decline from the previous year but still demonstrates improved profitability compared to earlier periods. It will be important for the company to continue monitoring and managing its profitability to ensure sustained financial health and performance in the future.